HDIL share locked in lower circuit after two directors arrested in PMC Bank case

Housing Development & Infrastructure Ltd (HDIL) share price was locked in lower circuit today after the economic offences wing of the Mumbai Police arrested realty firm's directors Rakesh Wadhawan and Sarang Wadhawan in the PMC Bank case.

HDIL share price hit lower circuit of 5%  at Rs 3.33  compared to the previous close of Rs 3.50 on BSE. HDIL share has lost 48.85% in last 15 sessions. There were only sellers, no buyers in the stock today. The micro cap share has fallen 87.31% since the beginning of this year and lost 83.6% during last one year.

Rakesh Wadhawan and his son, Sarang Wadhawan, accused of loan default, have been arrested by the Economic Offences Wing (EOW), a senior police official said on Thursday. Properties worth Rs 3,500 crore of HDIL have also been frozen by the EOW, he added . As per information, PMC bank officials created 44 hidden accounts with fake credentials to help HDIL. Loans given to HDIL later turned into NPAs (Non-Performing Assets), leading to its bankruptcy and PMC's exposure of thousands of crores.

The Mumbai Police had lodged an FIR against the former bank management and promoters HDIL in the PMC Bank case on Monday. Rakesh is the executive chairman of HDIL, whereas Sarang is the managing director of the company. The government had also issued a look-out circular against the two executives to stop them from leaving the country. The FIR also named PMC Bank's former Chairman Waryam Singh and now-suspended Managing Director Joy Thomas.